New home sales hit 15-month high

Plus: CFPB fines ACI Worldwide $25 million for mortgage servicing error

July 12, 2023

Good morning. This is Mortgage Nuggets, the newsletter you lean on for fresh mortgage news. Today’s newsletter is 655 words, a 2.5-minute read.

Disclaimer: Average mortgage rates as of July 11, 2023. © MND's Daily Rate Index.

1. Mortgage credit availability slightly ticks up in June

Mortgage credit availability ticked up in June but remained near a decade low, the Mortgage Bankers Association (MBA) said Tuesday. An increase in the MCAI indicates loosening credit, while a decline indicates that lending standards are tightening.

  • The Mortgage Credit Availability Index (MCAI) rose by 0.1% to 96.6 in June.

  • The Conventional MCAI was unchanged.

  • The Jumbo MCAI decreased by 0.2%, while the Conforming MCAI rose by 0.2%.

“Mortgage credit availability was essentially unchanged in June, remaining close to the lowest level since early 2013, as the industry continues to operate at reduced capacity”

Joel Kan, MBA’s vice president

2. Rate lock volume rose 31% in June

Mortgage Capital Trading (MCT), a San Diego-based mortgage hedge advisory and secondary marketing software firm, said Friday that mortgage lock volume in June spiked 31% from May.

The increase in June’s lock volume activity, which is based on actual locked loans, comes after a 15% drop in May’s total locked production.

“We saw originations towards the end of May slow down, so this is likely a summertime pickup in originations,” said Andrew Rhodes, Head of trading at MCT. “Rates, housing supply, and affordability will continue to be the forces behind the lack of new originations.”

MCT’s June data also shows a nearly 8% drop in total lock volume year over year. After hitting lows at the beginning of the year for purchase, rate/term refinance, and cash-out refinance, each production type continues to creep slowly upward, MCT said.

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3. Senate Democrats take aim at investor home purchases

Democratic senators want to restrict tax breaks for large corporate investors that buy local homes and often drive up costs.

The Stop Predatory Investing Act would prohibit an investor who acquires 50 or more single-family rental homes from deducting interest or depreciation on those properties.

“In too many communities, big investors funded by Wall Street buy up homes that could have gone to first-time home buyers, then jack up rent, neglect repairs, and threaten families with eviction,"

Ohio Senator Brown said in a statement.

The legislation would also encourage big investors to sell single-family rental homes back to homeowners or nonprofits in the community.

4. More Nuggets

Federal regulators are fining Bank of America $150 million for allegedly opening fake customer accounts, charging excessive fees, and withholding credit card rewards. LINK

The FHFA is looking to simplify the process of including entities or individuals in its Suspended Counterparty Program by requiring Fannie Mae, Freddie Mac, and the Federal Home Loan Banks to report any parties they engage with who have committed specific misconducts within the past three years. LINK

Westchester County DA has indicted six individuals and a corporation for allegedly stealing property deeds from distressed homeowners and fraudulently accessing mortgage loans. LINK

House Numbers, an AI-enabled home wealth management platform helping homeowners gain financial independence through AI-tailored home equity-based product recommendations, announced today that it has raised $3.75 million in pre-seed funding. LINK

5. 🤣🤣 great tweet and great twitter handle

☀️ See you on Friday!

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